Changing Bid Amount

[kdobson99]

I have a great performing keyword, that when it can stay live is my lifeblood. However I am in a constant struggle to keep the word listed. It keeps getting Deactivated even though it looks like the CTR is over .5%. Regardless, I now have been able to keep it up for a few days in a row by using a really high CPC and starting a new account.

However, that CPC loses money for me. When would it be safe to lower my max cpc? Essentially, it had stayed in the 2nd or 3rd listing for a few days now and the CPC was acceptable. Now, it has moved up to the no 1 listing and I am paying close to my max cpc becasuse the advertiser who is ususally at no 1 has bid a high max cpc. I want to be in the number 2 position, below him and I think my CTR will be fine in that position.

But, since the ad has only been staying live for 2 days now (usually is stopped after 2 to 3 hours) is it safe to lower my CPC to get down to the number 2 position yet?

[inasisi]

For a given Ad, the CTRs are highly correlated to the position. So if you were getting sufficient CTR at position 2 or 3, then you should go ahead reduce your CPCs to be at those positions.

DO remember, the CTR used for the On Hold / Disabled calculation is the CTR on Google's site and not the CTR that you see on the Adwords UI, which shows the CTR for all search sites. So to be safe, I try to maintain atleast .8% to 1 % CTR.